A behind-the-scenes reversal in Brussels that directly points to Greek shipping is altering the map of global energy. The 180-degree pivot by the European Union regarding sanctions on Russian liquefied natural gas (LNG)—following persistent demands from Greece—proves to showcase George Procopiou of Dynagas as the ultimate protagonist of the next era. The special exemption secured by Greek diplomacy not only safeguards existing contracts but also opens the door wide for the Greek shipowner to seal new agreements with French TotalEnergies and Russian Novatek. With the green light from EU officials, the specialized fleet of ice-class LNG carriers owned by Dynagas becomes the essential bridge to transport even larger volumes of gas from the Siberian Yamal mega-project directly to the massive market of China.
The benefit for TotalEnergies from the new sanctions
TotalEnergies will be able to continue selling natural gas from its flagship project in Siberia to Asia, after the EU retreated from demands to prohibit European companies from continuing the transshipment of Russian liquefied natural gas (LNG) to countries outside the bloc. Three people familiar with the matter told the Financial Times that they also expect TotalEnergies to benefit from the decision, as it will be able to continue selling gas to clients in Asia from Yamal LNG, the Siberian mega-project in which the French oil and gas giant holds a 20% stake. This exemption reverses a decision made by Brussels last October to ban such shipments starting from late 2026. EU companies will now be permitted to continue honoring LNG transshipments to third countries, provided the contracts were signed prior to Russia's invasion of Ukraine in February 2022 and volumes do not exceed 2025 levels.
Fear of the Chinese
An EU official noted that this move was justified because otherwise, the ships carrying the cargo would have been "requisitioned and taken over very quickly by Chinese operators; we would have had a ban, but we would have achieved zero impact on Russian gas flows." Total's capability to fulfill existing contracts for supplying Asian customers will help offset the operational impact on the energy company caused by the ban on imports of Russian LNG into the EU under long-term contracts starting late this year.
The chief executive officer of TotalEnergies, Patrick Pouyanné, stated in February that ambiguities surrounding the EU ban could force the company to halt shipments from Yamal entirely. However, last week he hinted that a reprieve might be granted, while emphasizing that the company was still carefully studying EU regulations. The new sanctions could allow sales "outside the EU, provided we utilize certain EU LNG tankers," he told analysts during the company's second-quarter earnings call last week. "Frankly, allowing the sale of Russian LNG outside the EU, not by EU entities but solely by our competitors, was a bit paradoxical for all European companies involved," added Pouyanné.
Annual profit of $400 million from Yamal
Total has now exited most of its Russian joint ventures, after writing down heavy financial impairments for its former operations there in 2022. The company confirmed last week that it is in the process of transferring a 10% stake in Arctic LNG—another major Siberian project—to an entity owned by Russia's Novatek. However, it retains its stake in Yamal, with the company stating it would only exit the Siberian enterprise under a mandatory sanctions regime. According to Pouyanné, Total earns approximately $400 million annually from Yamal LNG sales, alongside dividends from its 20% stakes in both Yamal and parent company Novatek, though these have been irregular in recent years. The contracts are tied to the price of Brent crude, he told analysts last week, meaning Total boosted its revenues from the unit due to higher oil prices triggered by conflict in the Middle East. The majority of Yamal cargoes are currently delivered to Europe, with a record 9.89 million tons shipped from the gas project to EU ports and just 510,000 tons sent to Asia during the first half of 2026.
New contracts for Procopiou's Dynagas
However, according to the FT, the decision on sanctions sets the stage for Total and Novatek to utilize Dynagas' ice-class LNG tanker fleet to transport greater quantities of gas to China. An industry specialist noted that traders expect Total to be "satisfied" with the latest sanctions package, as the company will be able to continue transporting gas from Yamal as long as it falls within the existing terms of its supply contracts. An official from the European Commission stated that the LNG exception was "strictly limited to the transshipment of Russian LNG to third countries" or to markets linked to transshipments. The official added that LNG transport from Sakhalin-2, a project in eastern Russia, has also been exempted from sanctions through March 31, 2028, in order to prevent disruptions to the natural gas supply of Japan and South Korea.
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